Money vs wealth

There’s misunderstandings about the differences between money and wealth.

If you have taken an Economics class before, you would have learnt about money. It’s defined as a store of value, medium of exchange or unit of currency. Money is what you get in exchange for your time. When you do your job and create value for society, you receive payment for the work done in the form of money.

Unfortunately, wealth is not taught in school because education is designed for general knowledge such as arithmetic, reading and writing; not wealth creation.

Robert Kiyasaki had explained the cause of it and dived deep into the reasons in his book “Rich dad, Poor Dad” and this interview.

In Naval Ravikant’s terms: wealth is the assets that work for you.

An asset is a resource with economic value that one owns or controls with the expectation that it will provide a future benefit.